VINACHEM

On Oct 7, 2017, Vietnam National Chemical Group (Vinachem) held a conference to summarize the operation of Group in quarter III/2017 and deploy the task of quarter IV/2017 with a determination to improve, complete and deploy task, solution to achive target of Group. Attending and directing the meeting were Mr. Nguyen Van Thanh, Director of Chemical Department, Ministry of Industry and Trade; the leadership of Group and representative of unit members. Conference presided over by Mr. Nguyen Gia Tuong General Director and CEO of Group in Ho Chi Minh City.

The delegates heard the Deputy General Director Mr. Bui The Chuyen speeched the report of quarter III and the first nine months and point out the task of quarter IV/2017. For the first 9 months of 2017, the Group achieved positive results. In the first 9 months, production value increased by 8.2%, Revenue increased 5.3%, gross profit was 52 billion VND, paid to State budget was 1,318 billion VND, the production and consumption increased comparing to the same period of 2016; Ensure balance in supply and demand of commodities in domestic, especially fertilizers, pesticides and other essential commodity; Ensure employment and income for employees. Environmental and safety at work was ensured. Party, trade unions and youth unions operated under direction and guidance of superior. However, in the other hand, result of production and business of Group have not met the target.

Some targets achieved in the third quarter and the first 9 months of 2017 are as follows:

1.Production value calculated according to practical prices: Q3 was estimated 10,294 trillion VND, up 9.2% and the first 9 months was estimated at VND 31,525 trillion VND, up 8.2% over the same period last year. The group of fertilizers and pesticides up 11%, 9 months up 11.3%; Apatite up 8.7%, accumulated of 9 months decreased 17.2%; Rubber up 15.8%; Accumulated of 9 months up 9.3%; Electrochemistry (batteries and accumulators) up 5.6% and accumulated of 9 months up 9.6%; Detergent up 5.4%, accumulated of 9 months up 16%; Basic chemicals, industrial gas up 4%, accumulated of 9 months down1.8% compared to the same period in 2016.

2. Revenue in quarter II was estimated 10,539 billion VND up 9%, accumulated of 9 months estimated 32,997 billion VND up 5.3% compared to the same period in 2016. Of which: fertilizer and pesticide products up 7.2%, accumulated of 9 months up 5.3%; Apatite up 6.5%, accumulated of 9 months dow 12.4%; Rubber increased 15.3% and accumulated of 9 months up 9.6%; Electrochemicals (batteries and accumulators) up 6% in the third quarter and accumulated of 9 months increased 11.6%; Detergents down 7.5%; accumulated of 9 months up 14.4%; Basic chemicals, industrial up 5.4%, and accumulated in 9 months down 2.1% compared to the same period in 2016.

3. paid the state budget in quarter III was estimated 392 billion VND; Accumulated of 9 months was estimated 1,318 billion VND, by 77.8% of the plan of 2017.

4. Gross Profit of quarter III was estimated 69 billion VND, of which derivative interest was 438 billion VND, derivative loss was 507 billion VND; Accumulated of 9 months was 52 billion VND, therein derivative interest was 1,655 billion VND, derivative loss was 1,603 billion VND.

5. Product output: In 9 months, the Group has produced and supplied 2.7 million tons of fertilizers to the market; 1.9 million automobile tires; over 5.6 million motorbike tires and tubes; 286 thousand tons of detergent and many chemical products for production and social life. Some products increased over the same period: automobile tires up 4.7%, batteries by 5.3%, accumulators by 10.6%, phosphate up 5.2%, NPK up 5.5%, Urea nitrogenous up 10%, DAP up 21% compared to the same period in 2016. However, some products down: apatite ore, bicycle tires and tubes, automobile tubes, automobile tubes, detergents etc.

6. Import and export quarter III was estimated $ 125 million, up 17.9% compared to the same period of 2016; Accumulated of 9 months reached 384.3 million USD, by 76.2% of the plan, up 25.9% compared to the same period of 2016. Therein, export value estimated 198 million USD, up 20%; import value estimated reaching 186 million USD, up 32.8% compared to the same period of 2016.

7.The average salary of 9 months is 8.48 million VND / person / month with the total number of employees 23.588 people.

Production and business results in quarter III and the first nine months of 2017 was increased, but the forecast of quarter IV still have difficult, the Group asked the leadership of unit members, Representatives of the Group's capital in joint-stock companies and joint ventures review and unanimous in the Board of Directors, highly focused on production, business, development and investment, Expanding the market to achieve the highest results of quarter IV and the whole year 2017.

The target of production business and investing construction in Q4/2017 such as: industrial production value in current prices of quarter IV reach 11,000 billion VND; The whole year is estimate 42,528 billion VND, up 0.2% compare to the plan and up 9.5% compared the same period last year; Revenue of quarter IV strives to reach 11,311 billion VND; The whole year reach 43,308 billion VND, up 1.7% compare to the plan and up 3.5% higher than the same period last year; Profit of quarter IV reach 103 billion VND, therein derivative interest reach 514 billion VND, derivative loss estimate by 410 billion VND. Accumulated of whole year, Profit reach 155 billion VND, therein derivative interest reach 2,169 billion VND, derivative loss estimate by 2,014 billion VND; The average wage of quarter IV estimate by 8.91 million VND / person / month; Total investment value estimate by 890 billion VND.

Speeching conclusions of the conference Mr. Nguyen Gia Tuong praised the efforts of unit members in overcoming difficulties, to complete production and business task of whole Group, maintain employment and ensure income of employee. But task of quarter IV/2017 is a difficult task, to complete this task, need whole employees and staff of Group make every effort to achive the best results.